Zydus Lifesciences on Tuesday announced that it has entered into a Business Transfer Agreement for the purchase of the active pharmaceutical ingredients (API) arm of Watson Pharma on a cash-free and debt-free basis at a lump-sum consideration of Rs 46.77 crore.
The business undertaking of Watson Pharma is engaged in developing, manufacturing, marketing, and sale of Active Pharmaceutical Ingredients. The acquisition is expected to be completed by March 31, 2023.
The API unit of Watson Pharma has a manufacturing facility in Ambernath, Maharashtra. The business unit was catering to the API requirements of Teva group, which is the promoter of Watson Pharma; it is not involved in the third-party sale of APIs.
Zydus Lifesciences reported an over 82 percent drop in its consolidated profit at Rs 522.7 crore for the September quarter compared to Rs 3,002 crore in the year-ago period. Its net sales rose to Rs 4134.7 crore from Rs 3,784.8 crore in the same period a year ago.
Shares of Zydus Lifesciences are trading at Rs 406, up 1.51 percent.
